Market regulator Sebi has banned 14 life insurance companies, including those belonging to

Tatas, SBI, ICICI, HDFC and Reliance Anil Ambani group from raising funds through unit
linked schemes, a move on which insurance regulator feels that the firms should take legal
recourse.

Many of the affected companies said they would talk to both Sebi and IRDA on the issue, which
has emerged as a bone of contention between the two regulators.

Reacting to the order, IRDA chairman J Harinarayan said, "I don't think their (Sebi's)
position is well founded." Insurance companies have to take legal recourse since the order
was issued against individual companies and IRDA is not party to it, he said.

Rejecting the arguments by insurance companies that ULIP schemes are insurance products, a
view endorsed by IRDA, market regulator SEBI issued the order late last night.

The players who have been prohibited from raising any further money include big players like
SBI Life Insurance Company, ICICI Prudential Life, Reliance Life, Metlife India, Aviva Life,
Tata AIG Life, etc.

However, state-owned insurer LIC is not named in the order, which further said in case these
entities wanted to raise funds through any such schemes they would have to obtain the requisite
certificate of registration from Sebi.

The Order was issued by Sebi whole time member Prashant Saran, said.

A Max New York Life spokesperson said, "We have not received any communication from Sebi.
We would not comment on this news on Sebi's ban on ULIPs of some of the life insurers without
receiving any communication from Sebi."

Many other insurance companies officials, on the condition of anonymity, said they would
approach IRDA on the issue before taking any call.

Earlier in January, Sebi had issued a notice to these companies asking why they did not seek its
permission before offering ULIP schemes